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Real Estate Broker Commission Agreement for Singapore

Real Estate Broker Commission Agreement Template for Singapore

A Real Estate Broker Commission Agreement in Singapore is a legally binding document that establishes the terms and conditions under which a licensed real estate broker or agent will provide services to a property owner/seller. The agreement is governed by Singapore law and must comply with the Estate Agents Act 2010 and related regulations overseen by the Council for Estate Agencies (CEA). It details commission rates, scope of services, obligations of both parties, and terms of engagement while adhering to Singapore's strict real estate industry regulations.

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What is a Real Estate Broker Commission Agreement?

The Real Estate Broker Commission Agreement is essential for property transactions in Singapore's regulated real estate market. This document is used when a property owner engages a licensed real estate broker to sell or lease their property. It provides clear terms for commission structures, defines the scope of services, and ensures compliance with Singapore's Estate Agents Act 2010 and CEA regulations. The agreement protects both parties' interests by clearly outlining responsibilities, payment terms, and performance expectations while adhering to local legal requirements.

What sections should be included in a Real Estate Broker Commission Agreement?

1. Parties: Identification of the broker and property owner/seller

2. Background: Context of the agreement and property details

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of broker appointment and services to be provided

5. Commission Structure: Detailed breakdown of commission rates and payment terms

6. Obligations of the Broker: Duties and responsibilities of the broker

7. Obligations of the Property Owner: Duties and responsibilities of the property owner

8. Term and Termination: Duration of agreement and termination conditions

9. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Real Estate Broker Commission Agreement?

1. Exclusivity: Terms of exclusive agency rights - used when broker is granted exclusive rights to sell/lease the property

2. Marketing Budget: Details of marketing expenses and responsibilities - used when specific marketing arrangements are agreed

3. Sub-agents: Terms for engaging sub-agents - used when broker is permitted to engage other agents

4. Force Majeure: Provisions for unforeseen circumstances - used when additional protection against extraordinary events is needed

What schedules should be included in a Real Estate Broker Commission Agreement?

1. Property Details Schedule: Detailed description of the property including address, size, features

2. Commission Rate Schedule: Detailed breakdown of commission rates for different transaction types

3. Marketing Plan: Detailed marketing strategy and activities

4. Required Documentation: List of documents required for property transactions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions






















Clauses

























Industries

Estate Agents Act 2010 (Chapter 95A): Primary legislation that regulates the real estate agency industry in Singapore, establishes the Council for Estate Agencies (CEA), and sets requirements for licensed property agents

Estate Agents (Estate Agency Work) Regulations 2010: Subsidiary legislation that details the duties and responsibilities of estate agents, prescribes the conduct of estate agency work, and sets requirements for commission disclosure

Estate Agents (Commission and Fees) Notice: Regulatory notice providing guidelines on commission rates and fee structures, rules on disclosure of commission rates, and restrictions on commission collection

Estate Agents (Professional Service Manual) Regulations: Regulations establishing professional standards and practices, documentation requirements, and client management protocols for estate agents

Contract Law (Chapter 53): General contract law governing contract formation principles, terms and conditions requirements, and rights and obligations of parties in Singapore

Consumer Protection (Fair Trading) Act: Legislation protecting consumers against unfair practices, establishing disclosure requirements and cooling-off periods in business transactions

Personal Data Protection Act 2012: Law governing requirements for handling personal data, consent obligations, and data protection measures in business transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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